Opposing Views - recessionhttp://www.opposingviews.com/taxonomy/term/14339/0
en15 AIG Executives Return Their Bonuseshttp://www.opposingviews.com/i/15-aig-executives-return-their-bonuses
<p>New York Attorney General Andrew Cuomo said Monday that 15<br />
employees who received some of the largest bonuses from American<br />
International Group Inc. have agreed to return the more than $30<br />
million worth of payments in full.</p>
<p>The Associated Press reports: </p>
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<p><strong>First read</strong> <a href="http://bible.logos.com/passage/esv/2%20Corinthians%201.1-11" target="_blank&quot;">2 Corinthians 1:1-11</a></p>
<p>This verse from Corinithians is a message about God’s purposes in the recession. By recession I don’t have any sophisticated definition in mind. I just mean various financial setbacks like business slowdown, decreasing profits, massive layoffs and joblessness, the bursting of the housing bubble, thousands of foreclosures, personal and business bankruptcies, bank failures, investment company collapses, the loss of retirement funds, and the social ills and unrest that go with the downturn. </p>
<p>God is sovereign over these things, he foresees them all, he causes or permits them all, and when he causes or permits something, he does so with purpose and design. </p>
<p>* The lot is cast into the lap, but its every decision is from the Lord. (Proverbs 16:33) <br />* Many are the plans in the mind of a man, but it is the purpose of the Lord that will stand. (Proverbs 19:21) <br />* The Lord brings the counsel of the nations to nothing; he frustrates the plans of the peoples.” (Psalms 33:10) <br />* [The Lord] declares the end from the beginning . . . saying, “My counsel shall stand, and I will accomplish all my purpose.” (Isaiah 46:10) </p>
<p>So none of the recessionary events has surprised the Lord. His purposes and designs are being fulfilled according to plan. And what I want to do is draw your attention to some of those purposes. </p>
<p><strong>Why This Message?</strong><br />Two things have inclined me to preach a message on God’s purposes in the recession. </p>
<p>1. Economic Turmoil </p>
<p>The second thing that inclines me to preach on this just now is that few things have had a more pervasive effect on our lives nationally and globally in recent years than the financial turmoil around the world. We need to hear at least some of God’s perspective on this. </p>
<p>And that is all we ever have—some of his perspective. He is God and we are not. He has told of some of what he is doing in this recession. But most of what he is doing—billions and billions of God-designed effects—he does not tell us. But what he does tell us is crucial for living amid the providence of what he does not tell us. </p>
<p>2. “Finishing the Million” </p>
<p>Third, I want to put the present financial sprint to finish the North Campus—the sprint we are calling Finish the Million by March—in a larger biblical and contemporary context, to guard us from a kind of ecclesiastical myopia. </p>
<p><strong>(Some of) God’s Purposes in This Recession</strong><br />Now what are some of God’s purposes in this recession? I will mention five: </p>
<p>1. He intends for this recession to expose hidden sin and so bring us to repentance and cleansing. <br />2. He intends to wake us up to the constant and desperate condition of the developing world where there is always and only recession of the worst kind. <br />3. He intends to relocate the roots of our joy in his grace rather than in our goods, in his mercy rather than our money, in his worth rather than our wealth. <br />4. He intends to advance his saving mission in the world—the spread of the gospel and the growth of his church—precisely at a time when human resources are least able to support it. This is how he guards his glory. <br />5. He intends for the church to care for its hurting members and to grow in the gift of love. <br /><strong><br />1. To Expose Sin and Bring Repentance</strong><br />The book of Job in the Old Testament begins, “There was a man in the land of Uz whose name was Job, and that man was blameless and upright, one who feared God and turned away from evil” (Job 1:1). But in the last chapter of the book, Job says, “I despise myself, and repent in dust and ashes” (Job 42:6). He was “blameless,” but later he repented. What does that mean? </p>
<p>It means that the most godly people in the world are like a clear glass of water with a sediment of sin hidden at the bottom of the glass. And when the glass is struck—with Job’s suffering, or with our recession—the sediment of sin is stirred up and exposed, and the water becomes cloudy. That’s one of the things that recessions are for. </p>
<p>And it works both individually and socially. </p>
<p>Individually Paul said in 2 Corinthians 1:8-9, “We were so utterly burdened beyond our strength that we despaired of life itself. Indeed, we felt that we had received the sentence of death. But that was to make us rely not on ourselves but on God who raises the dead.” </p>
<p>God brought his own faithful servant Paul to the brink of death so that he might learn more deeply to rely not on himself but on God. If that happened to Paul, we may be sure that God is doing that for us as well in this recession. That we may rely on him and not ourselves. </p>
<p>At the bottom of every Christian heart—no matter how advanced in faith and godliness—there is the sediment of self-reliance. Then God shakes our lives, sometimes to the foundations, to show us our self-reliance and clean it out with a new, deeper reliance on him. </p>
<p>Socially, the recession reveals a host of sins that hurt people. The recent Ponzi schemes are one of the clearest examples. Promise people huge returns on their investment when there is nothing to invest in, then pay those returns with some of the next investments in nothing. And keep doing it for years, while you skim millions for yourself. Until a recession makes people want their investments back—and they don’t exist. Recessions have a wonderful power to expose that kind of deceit. What will it expose about you? </p>
<p>And, of course, the recession is especially good at exposing the sin of wasting other people’s money (or our own), and the sin of selfishness and greed in the mortgage business, and the sin of fear when everything starts coming down, and the sin of grumbling and impatience. And on and on. What a gift the recession is in the exposure of sin. May the Lord give us all the grace to repent and receive the forgiveness that God offers in Jesus Christ. </p>
<p><strong>2. To Awaken Us to World Poverty</strong><br />It’s astonishing how blind prosperity makes us to the miseries of the world. God has some remedies for that kind of indifference. For example, it says in Hebrews 13:3, “Remember those who are in prison, as though in prison with them, and those who are mistreated, since you also are in the body.” </p>
<p>How does that work? He says that there are people that we should care about who are imprison and mistreated. We tend to forget them. So he says, “Remember!” And he says: “As though with them” and “since you have a body.” So how does it work? It works like this: You have a body and sometimes it hurts. When it hurts, remember that there are people right now who are being mistreated—who are hurting much more than you. Imagine yourself in their shoes, and treat them the way you would want to be treated. </p>
<p>Recession hurts us. It imprisons us. What is God’s aim? That we would wake up. Does this recession bother us? If it bothers us, we should be bothered by the fact that millions always live in recession. Only live in recession. </p>
<p>One billion people do not have safe water to drink. Sixteen thousand children die every day from hunger related illnesses. Almost eighteen million children are orphaned in sub-Saharan Africa. </p>
<p>Our family prays through the Global Prayer Digest each morning. For January 29, 2009, we prayed for the Afar people of Ethiopia: </p>
<p>It’s 3:00 a.m., and the Afar father is still awake. The desert night is cold. He snuggles up to his wife and newborn baby to keep them warm. Their stomachs rumble with hunger. Should he slaughter his scrawny goat to feed his wife, hoping she will produce enough milk for their baby? Or should he beseech the clan elders to move again, in search of weeds for the goat, or maybe even some fresh water? </p>
<p>They are fortunate; both his wife and their baby survived the birth. The Afar people have the highest maternal fatality rate in the world. Women give birth without benefit of sterile conditions, or even clean water. Of the babies born alive one-third die before age five. Afar people roam throughout one of the most desolate places on earth: the Ethiopian desert. </p>
<p>Drought and malnutrition make them vulnerable to diseases such as tuberculosis, malaria, conjunctivitis, and other water-borne illnesses. Of 13 million Afar people, three million are infected with HIV/AIDS. </p>
<p>It is good to know these things. And to pray about these things. And to cultivate a radical culture at Bethlehem in which hundreds of people dream of ways that their lives can count creatively and long-term for the relief of suffering. Recession has a way of making us wake up to the endless recession of millions. It has a way of changing our priorities and releasing effort and money for others. </p>
<p>Part of our overall vision at Bethlehem called Treasuring Christ Together (TCT) is the Global Diaconate. The giving to TCT is over and above the $9.2 million budget for church and missions this year. Ten percent of everything you give to the vision of TCT goes to our efforts to help the poorest of the poor. Since 2005 when TCT started, you have given over $700,000 to this fund, and $593,000 of it has been disbursed. God’s purpose for this recession is to say: That’s good work; and now more than ever, don’t let up. </p>
<p><strong>3. To Relocate the Roots of Our Joy in His Grace, Rather Than in Our Goods</strong><br />God sends recessions to his people to pull up the roots of our joy from the pleasures of the world and sink those roots into the pleasures of the glory of his grace. Here’s he clearest recessionary text about this in the Bible—2 Corinthians 8:1-2. It describes the roots of the joy of the Macedonian believers in their “recession.” </p>
<p>We want you to know, brothers, about the grace of God that has been given among the churches of Macedonia, for in a severe test of affliction, their abundance of joy and their extreme poverty have overflowed in a wealth of generosity on their part. </p>
<p>This is my dream for Bethlehem. Verse 2 ends with a “wealth of generosity.” We want to be a generous people. Generous in every way. Where does it come from? From prosperity? No. Extreme poverty. “Their extreme poverty overflowed in a wealth of liberality.” This is why I call this a recessionary text. Here are people overflowing in generosity when the economic times are very bad. </p>
<p>Where then did the generosity come from if not from prosperity? From a supportive and sympathetic culture surrounding them? No. Verse 2 says they were in a “severe test of affliction.” That means they were being harassed. You can see what that looks like in Acts 17:5-9. </p>
<p>Where then did this wealth of generosity come form? Paul says it came from joy, abundance of joy. Verse 2: “Their abundance of joy and their extreme poverty have overflowed in a wealth of generosity.” </p>
<p>Their joy was not rooted in prosperity or popularity. But it was very great. Paul calls it “abundance of joy” in the middle of verse 2. Where did that joy come from? </p>
<p>It came from the grace of God. Verse 1: “We want you to know, brothers, about the grace of God that has been given among the churches of Macedonia.” What makes people grumble and be stingy is a sense of entitlement. But if we have tasted the measure of our sin and the magnitude of God’s grace, we will have abundance of joy in recessionary hardships. God’s grace overflowing in Jesus for sinners like us is the most glorious thing in the universe. </p>
<p>This is where our joy is rooted. This is why the Fighter Verse for this past week says that Christians can be thankful in all circumstances (1 Thessalonians 5:18). Our joy is not rooted in circumstances. God has relocated our joy in his grace, not our goods—in his mercy, not our money, in his worth, not our wealth. </p>
<p>If the recession can assist that relocation, it will have done the most important thing possible. Because God is most glorified in us when we are most satisfied in him. </p>
<p><strong>4. To Guard His Glory by Advancing His Saving Mission in the World Precisely When Human Resources Are Low</strong><br />We see this all over the Bible. God does his great advancing work again and again when it looks least possible for us. </p>
<p>* He promises the heir when Abraham and Sarah are too old to have children. <br />* He splits the Red Sea when Israel is hopelessly trapped by Pharaoh’s army. <br />* He gives manna when there is no food in the wilderness. <br />* He stops the Jordan River when it’s time to take the land. <br />* When a city stands in the way, he makes the walls fall down. <br />* When the Midianites were as many as the sand of the sea, God whittled Gideon’s army down to 300 so God would get the glory for the victory. <br />* When Goliath defies the armies of the Lord, God sends a boy with a sling and five stones. <br />* When the Son of God is to come into the world, God calls a virgin to conceive. <br />* And when the mighty devil himself is to be defeated, a Lamb goes to the slaughter. </p>
<p>And in 2 Corinthians 8:1-2, when God wants to raise money for the poor in Jerusalem, he uses afflicted, poverty-stricken Macedonians and fills them with joy because of his grace. </p>
<p>So that’s the context for Finish the Million by March. In only four weeks, in the hardest financial times in decades, on top of a 9.2 million-dollar church budget, with thousands of givers who never attend the North Campus, all of Bethlehem (on every campus) will give $235,000 to meet the million-dollar goal to pull the trigger on finishing the North Campus. </p>
<p>But vastly more important than that is where your treasure is—where your heart is. Are you like the Macedonians whose joy—in times of “recession”—was invincible because it was rooted in the grace of God? May God open our eyes to glory of his grace. When he does, the last purpose for the recession that I will mention will come true. </p>
<p><strong>5. To Bring His Church to Care for Her Hurting Members and Grow in Love</strong><br />Buildings exist for people, not the other way around. May no effort to build ever keep us from caring for Christ’s followers. Acts 4:34 describes the early church: “There was not a needy person among them.” This is what the church does. Every member will have his needs met. God will test us to see if we are a church or a club. </p>
<p>May the Lord grant us “Macedonian grace” to “finish the million” and care for each other. </p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/what-s-god-s-purpose-for-the-recession#commentscristianityrecessionreligion in societythe recessionThe RecessionThu, 19 Mar 2009 21:39:40 +0000Pastor John Piper1396 at http://www.opposingviews.comAIG's Liddy Tells Congress Some Employees Giving Back Bonuseshttp://www.opposingviews.com/i/aig-s-liddy-tells-congress-some-employees-giving-back-bonuses
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<p>Edward Liddy, the chief of beleaguered insurance giant AIG, was compelled to testify before Congress today after the announcement that AIG employees would be given over <a href="http://www.opposingviews.com/articles/video-aig-to-pay-165-million-in-bonuses-using-bailout-money">$165 million in bonuses</a> using public funds set off widespread criticism. In response, Liddy promised that he has asked those who received the largest bonuses to pay back at least half. </p>
<p>“I have asked the employees of A.I.G. Financial Products to step up and do the right thing,” Mr. Liddy told Congress. “Specifically, I have asked those who received retention payments of $100,000 or more to return at least half of those payments.”</p>
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<strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/aig-s-liddy-tells-congress-some-employees-giving-back-bonuses#commentsA I GEdward Liddyobama presidencyrecessionthe recessionObama PresidencyThu, 19 Mar 2009 01:03:42 +0000DeepDiveAdmin1380 at http://www.opposingviews.comObama and Dodd Hypocritical on AIG Bonuseshttp://www.opposingviews.com/i/obama-and-dodd-hypocritical-on-aig-bonuses
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<p>In response to public outrage, Obama is belatedly criticizing the millions of dollars in bonuses that AIG, which is being bailed by taxpayers at a cost of $170 billion, is paying to its executives. But his criticism is <a href="http://corner.nationalreview.com/post/?q=YzNjNGQ0Y2FmYjRlNDI2ZTIzMzkwMzI3MmRlN2M1ZjA=" target="_blank">hypocritical and dishonest,</a>, both because his administration had <a href="http://pajamasmedia.com/instapundit/73660/" target="_blank">long known</a> about the bonuses before they became public, and because the <a href="http://www.opposingviews.com/questions/how-will-obama-s-stimulus-bill-affect-america">stimulus</a> package he himself signed <a href="http://pajamasmedia.com/instapundit/73660/" target="_blank">contains a provision</a> expressly designed to shield those undeserved bonuses.</p>
<p>Who put that provision there? Senator Chris Dodd (D-CT), who <a href="http://pajamasmedia.com/instapundit/73660/" target="_blank">received $103,100</a> in campaign donations from AIG. Since 2003, AIG has made most of its vast campaign contributions to <a href="http://www.openmarket.org/2009/03/15/bailouts-for-liars-illegal-aliens-and-undeserved-bonuses/" target="_blank">liberal lawmakers</a> — including <a href="http://pajamasmedia.com/instapundit/73519/" target="_blank">68 percent</a> of its contributions in 2008. (Dodd, the Chairman of the Senate Banking Committee, is under an ethical cloud after having received a sweetheart deal from the ailing sub-prime mortgage lender Countrywide).</p>
<p>While executives at AIG get bonuses courtesy of the taxpayer, unions will be receiving billions in <a href="http://www.foxnews.com/politics/first100days/2009/03/16/union-wage-rule-means-fewer-projects-completed-stimulus-cash/" target="_blank">inflated and wasteful</a> contracts courtesy of restrictions on state projects contained in the stimulus package.</p>
<p>Liberal lawmakers have also taken steps to insure that <a href="http://www.openmarket.org/2009/03/15/bailouts-for-liars-illegal-aliens-and-undeserved-bonuses/" target="_blank">illegal aliens and people who lied on their loan applications</a> will benefit from the bailouts.</p>
<p>Obama claimed an <a href="http://www.opposingviews.com/questions/who-has-the-right-plan-for-america-s-economy">economic</a> catastrophe would happen if Congress didn’t pass the bloated $800 billion stimulus package, which <a href="http://www.openmarket.org/2009/02/12/stimulus-guts-welfare-reform-is-deceptive/" target="_blank">guts welfare reform</a>. But now the Congressional Budget Office admits that the “stimulus” will actually make the <a href="http://www.opposingviews.com/questions/would-a-credit-card-bill-of-rights-ultimately-help-or-harm-consumers">economy</a> smaller “<a href="http://www.openmarket.org/2009/02/10/stimulus-package-shrinks-economy-expands-welfare-rolls/" target="_blank">in the long run</a>.”</p>http://www.opposingviews.com/i/obama-and-dodd-hypocritical-on-aig-bonuses#commentsA I Gobama presidencypoliticsrecessionthe recessionObama PresidencyWed, 18 Mar 2009 05:05:17 +0000CEI1363 at http://www.opposingviews.comCuomo Says 73 AIG Employees Received $1 Million Bonuses or Morehttp://www.opposingviews.com/i/cuomo-says-73-aig-employees-received-1-million-bonuses-or-more
<p><em>In the latest chapter of the <a href="http://www.opposingviews.com/articles/video-aig-to-pay-165-million-in-bonuses-using-bailout-money">AIG bonus affair</a>, New York Attorney General Andrew Cuomo sent the following letter to Rep. Barney Frank March 17.</p>
<p></em>Dear<br />
Chairman Frank:</p>
<p>I<br />
am writing to provide you and your Committee with information regarding<br />
an ongoing investigation my Office has been conducting of executive<br />
compensation at American International Group ("AIG"). I hope this<br />
information will be useful to the Committee at its hearing on AIG<br />
tomorrow. </p>
<p>We<br />
learned over the weekend that AIG had, last Friday, distributed more<br />
than $160 million in retention payments to members of its Financial<br />
Products Subsidiary, the unit of AIG that was principally responsible<br />
for the firm's meltdown. Last October, AIG agreed to my Office's demand<br />
that no payments be made out of its $600 million Financial Products<br />
deferred compensation pool. While this was a positive step, we were<br />
dismayed to learn after the fact that AIG had made multi-million dollar<br />
payments out of its separate Financial Products retention plan on<br />
Friday.</p>
<p>AIG now claims that it had no choice but to<br />
pay these sums because of the unalterable terms of the plan. However,<br />
had the federal government not bailed out AIG with billions in taxpayer<br />
funds, the firm likely would have gone bankrupt, and surely no payments<br />
would have been made out of the plan. My Office has reviewed the legal<br />
opinion that AIG obtained from its own counsel, and it is not at all<br />
clear that these lawyers even considered the argument that it is only<br />
by the grace of American taxpayers that members of Financial Products<br />
even have jobs, let alone a pool of retention bonus <a href="http://www.opposingviews.com/topics/money">money</a>. I hope the<br />
Committee will take up this issue at its hearing tomorrow.</p>
<p>Furthermore,<br />
we know that AIG was able to bargain with its Financial Products<br />
employees since these employees have agreed to take salaries of $ I for<br />
2009 in exchange for receiving their retention bonus packages. The fact<br />
that AIG engaged in this negotiation flies in the face of AIG's<br />
assertion that it had no choice but to make these lavish multi-million<br />
dollar bonus payments. It appears that AIG had far more leverage than<br />
they now claim.</p>
<p>AIG also claims that retention of<br />
individuals at Financial Products was vital to unwinding the<br />
subsidiary's business. However, to date, AIG has been unwilling to<br />
disclose the names of those who received these retention payments<br />
making it impossible to test their claim. Moreover, as detailed below,<br />
numerous individuals who received large "retention" bonuses are no<br />
longer at the firm. Until we obtain the names of these individuals, it<br />
is impossible to determine when and why they left the firm and how it<br />
is that they received these payments.</p>
<p>If<br />
AIG were confident in its claim that those who received these large<br />
bonuses were so vital to the orderly unwinding of the unit, one would<br />
expect them to freely provide the names and positions of those who got<br />
these bonuses. My Office will continue to seek an explanation for why<br />
each one of these individuals was so crucial to keep aboard that they<br />
were paid handsomely despite the unit's disastrous performance.</p>
<p>As</p>
<p>you may know, my Office yesterday subpoenaed AIG for the names of those<br />
who received these bonuses, and we plan to do everything necessary to<br />
enforce compliance. American taxpayers deserve to know where their<br />
money is going, and AIG's intransigence and desire to obscure who<br />
received these payments should not be tolerated. Already my Office has<br />
determined that some of these bonuses were staggering in size. For<br />
example:</p>
<p>-- The top recipient received more than $6.4 million; </p>
<p>--<br />
The top seven bonus recipients received more than $4 million each;</p>
<p>-- The top ten bonus recipients received a<br />
combined $42 million;</p>
<p>-- 22 individuals received bonuses of $2 million or more, and combined they received more<br />
than $72 million;</p>
<p>-- 73 individuals received bonuses of $1 million or more; and</p>
<p>--<br />
Eleven of the individuals who received "retention" bonuses of $1<br />
million or more are no longer working at AIG, including one who<br />
received $4.6 million;</p>
<p>Again,</p>
<p>these payments were all made to individuals in the subsidiary whose<br />
performance led to crushing losses and the near failure of AIG. Thus,<br />
last week, AIG made more than 73 millionaires in the unit which lost so<br />
much money that it brought the firm to its knees, forcing a taxpayer<br />
<a href="http://www.opposingviews.com/questions/do-we-need-another-new-deal">bailout</a>. Something is deeply wrong with this outcome. I hope the<br />
Committee will address it head on.</p>
<p>We have also now obtained the contracts under<br />
which AIG decided to make these payments. The contracts shockingly<br />
contain a provision that required most individuals' bonuses to be 100%<br />
of their 2007 bonuses. Thus, in the Spring of last year, AIG chose to<br />
lock in bonuses for 2008 at 2007 levels despite obvious signs that 2008<br />
performance would be disastrous in comparison to the year before. My<br />
Office has thus begun to closely examine the circumstances under which<br />
the plan was created.</p>
<p>I</p>
<p>look forward to continuing to cooperate with the Committee in any way<br />
possible to ensure that taxpayer funds are not misspent on unjustified<br />
bonuses or otherwise misused.</p>
<p>Very truly yours,</p>
<p>Andrew M. Cuomo</p>
<p>Attorney<br />
General of the State of New York</p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/cuomo-says-73-aig-employees-received-1-million-bonuses-or-more#commentsAndrew Cuomoheadlinesmoneyobama presidencyrecessionthe recessionHeadlinesTue, 17 Mar 2009 22:37:03 +0000DeepDiveAdmin1358 at http://www.opposingviews.comComedy Central's Jon Stewart Weighs in on AIG Bonuseshttp://www.opposingviews.com/i/comedy-central-s-jon-stewart-weighs-in-on-aig-bonuses
<p>The country is outraged over <a href="http://www.opposingviews.com/articles/video-aig-to-pay-165-million-in-bonuses-using-bailout-money">AIG's plan to disperse $165 million</a> worth of bonuses to executives in its company. President Obama says he'll use everything in his legal <a href="http://www.opposingviews.com/questions/how-can-we-achieve-energy-independence">power</a> to stop the payments, while Congress is considering a 100 percent <a href="http://www.opposingviews.com/questions/who-has-the-right-plan-for-america-s-economy">tax</a> on the bonus amounts. Meanwhile, Comedy Central's Jon Stewart checks in with his thoughts:</p>
<p></p>
<a href="http://www.comedycentral.com" target="_blank"><br />
http://www.comedycentral.com/comedycentral/video/assets/syndicated-logo-...</a>) repeat scroll 0% 0%; float: left; width: 60px; height: 31px; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;"&gt;
<p></a><br />
<a href="http://www.thedailyshow.com/" target="_blank">The Daily Show With Jon Stewart</a>M - Th 11p / 10c
<a href="http://www.thedailyshow.com/video/index.jhtml?videoId=220548&amp;title=aig-gives-bailout-money-as" target="_blank">AIG Gives Bailout Money as Bonuses</a>
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<p></embed>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/comedy-central-s-jon-stewart-weighs-in-on-aig-bonuses#commentsA I Gentertainmentheadlinesjon stewartmediamoneyrecessionthe recessionEntertainmentTue, 17 Mar 2009 20:37:12 +0000DeepDiveAdmin1354 at http://www.opposingviews.com7 Ways to Keep Health Coverage if You Lose Your Jobhttp://www.opposingviews.com/i/7-ways-to-keep-health-coverage-if-you-lose-your-job
<p>Laid off? Don't panic. The following summarizes a new list of<br />
suggestions on how to maintain health coverage from the National Center<br />
for Policy Analysis. </p>
<p>According to Devon Herrick, a health<br />
economist and senior fellow with the NCPA, there are seven options you<br />
should consider as soon as possible after getting pink-slipped:</p>
<p>-- Use<br />
it before you lose it -- one of the first things you should do after<br />
getting laid off is ask the company human resources person exactly when<br />
your employer-paid coverage expires.</p>
<p>-- Stay in your employer plan<br />
by paying the (COBRA) premium -- be aware that you must accept and sign<br />
up for COBRA within 60 days or lose that option completely</p>
<p>-- Apply<br />
for the federal (COBRA) subsidy -- under the new stimulus bill, you may<br />
qualify for a 65 percent subsidy of COBRA costs for that first nine<br />
months.</p>
<p>-- Choose a cheaper former employer plan -- ask your<br />
former HR representative if the company offers a lower cost insurance<br />
plan that would cost you less under COBRA.</p>
<p>Also:</p>
<p>-- Join<br />
a spouse's or parent's health plan -- however, you need to act quickly<br />
because federal law requires that you sign up within 30 days from the<br />
date of a job loss.</p>
<p>-- Shop around for inexpensive coverage --<br />
there may be cheaper and better alternatives to COBRA, especially if<br />
you have no severe health problems.</p>
<p>-- If uninsurable (because of<br />
pre-existing conditions) you may still be able to obtain insurance --<br />
35 states have high-risk pools to insure those who are turned down by<br />
commercial insurers.</p>
<p>Ask questions and don't procrastinate<br />
past your 62-day window.&nbsp; Even high-deductible, catastrophic coverage<br />
may prevent years of financial medical debts, explains Herrick.</p>
<p>Source:<br />
Devon Herrick, "7 Ways to Keep Your Health Care If You Lose Your Job,"<br />
National Center for Policy Analysis, March 16, 2009.</p>
<p>For text:<a href="http://www.ncpa.org/pdfs/Seven_Ways_Job_3-16-09-FINAL-A.pdf" target="_blank"> http://www.ncpa.org/pdfs/Seven_Ways_Job_3-16-09-FINAL-A.pdf</a></p>
<p>For more on Health Issues:<a href="http://www.ncpa.org/sub/dpd/?Article_Category=16" target="_blank"> <a href="http://www.ncpa.org/sub/dpd/?Article_Category=16" title="http://www.ncpa.org/sub/dpd/?Article_Category=16">http://www.ncpa.org/sub/dpd/?Article_Category=16</a></p>
<p></a></p>
<p>POST YOUR COMMENTS BELOW</p>http://www.opposingviews.com/i/7-ways-to-keep-health-coverage-if-you-lose-your-job#commentshealth carepersonal financerecessionthe recessionThe RecessionTue, 17 Mar 2009 20:03:13 +0000NCPA1347 at http://www.opposingviews.comAIG to Pay $165 Million in Bonuses Using Bailout Moneyhttp://www.opposingviews.com/i/aig-to-pay-165-million-in-bonuses-using-bailout-money
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<p>It was revealed today that insurance giant AIG is planning to give over $100 million in bonuses to its top executives using the <a href="http://www.opposingviews.com/questions/do-we-need-another-new-deal">bailout</a> <a href="http://www.opposingviews.com/topics/money">money</a> given to it by the government. AIG insists that it's contractually obligated to pay out the bonuses, even with taxpayer money, but that hasn't stopped President Obama from expressing outrage at the company's plan and vowing to do everything possible to block the bonuses.
<p>“Under these circumstances, it’s hard to understand how derivative traders at<br />
A.I.G. warranted any bonuses at all, much less $165 million in extra pay,” said Obama in a press conference. “How do they justify this outrage to the taxpayers who are keeping<br />
the company afloat?”</p>
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POST YOUR COMMENTS BELOW</p>http://www.opposingviews.com/i/aig-to-pay-165-million-in-bonuses-using-bailout-money#commentsA I Ghealthobama presidencyrecessionthe recessionObama PresidencyMon, 16 Mar 2009 21:40:33 +0000DeepDiveAdmin1324 at http://www.opposingviews.comGrowing Income Gap Could Keep Economy from Full Recoveryhttp://www.opposingviews.com/i/growing-income-gap-could-keep-economy-from-full-recovery
<p>The federal stimulus package is a good way to jump-start our<br />
economy, but it is not enough to solve the deep crisis of inequality<br />
that has been building in this country for decades. A recent article<br />
says the government needs to act quickly to start addressing the<br />
growing income gap.</p>
<p>In an article in <a href="http://www.thenation.com/" target="_blank">The Nation</a> online, Christine Owens and Annette Bernhardt, executive director and policy co-director, respectively, of the <a href="http://www.nelp.org/" target="_blank">National Employment Law Project</a><br />
(NELP), say working families were struggling to survive even before the<br />
current recession. </p>
<p>Although U.S. workers are more productive than ever,<br />
they are faced with stagnant wages, disappearing benefits and little<br />
job security. The Bureau of Labor Statistics reports that eight of the<br />
top 10 occupations projected to generate the most jobs by 2016 are<br />
low-wage jobs in the service sector.</p>
<p>Owens and Bernhardt write:<strong></p>
<p>Policies focused only on job growth will simply put us<br />
back on the path toward greater inequality. If we truly want to rebuild<br />
a good jobs economy to “create jobs that sustain families and sustain<br />
dreams,” as President Obama recently put it—we have to act now to lay<br />
down the institutional and regulatory framework.</strong></p>
<p>According to Owens and Bernhardt, there are four low-cost things the<br />
government can do right now to put more money into the pockets of<br />
low-income families:</p>
<p><strong><br />Fully enforce <a href="http://www.aflcio.org/issues/jobseconomy/livingwages" target="_blank">minimum wage</a><br />
and overtime laws. Growing numbers of employers are ignoring even these<br />
most basic laws and retaliate against workers for reporting violations.<br />
The reports cites the example of Wal-Mart, the nation’s largest<br />
employer, which announced in December 2008 that it would settle 63<br />
cases in 42 states charging unpaid wages, totaling at least $352<br />
million and involving hundreds of thousands of current and former<br />
workers.</strong><a href="http://blog.aflcio.org/2008/11/17/wage-theft-a-national-epidemic" target="_blank"></p>
<p></a>Kim Bobo agrees. In her book, <a href="https://unionshop.aflcio.org/Wage_Theft_P1430.cfm" target="_blank"><em>Wage Theft in America: Why Millions of Working Americans Are Not Getting Pai</em><em>d</em>—<em>And What We Can Do About It</em></a><em>,</em> <em>Bobo, executive director of Interfaith Worker Justice says wage</em><em> </em>theft is “an epidemic” in the nation, especially in the low-wage labor market.</p>
<p>“Wage theft is a national crisis,” she writes. “As many as 2 or 3<br />
million workers are not being paid minimum wage; millions are denied<br />
overtime pay.”</p>
<p>Owens, Bernhardt and Bobo all say the Department of Labor must<br />
return to its core mission of safeguarding workplace standards by<br />
increasing the number of inspectors, targeting industries with high<br />
rates of violations, protecting workers who file complaints and<br />
cracking down on employers that misclassify their employees as<br />
independent contractors.</p>
<p>Recommendations in the NELP article include:</p>
<ul>
<li>Raising the federal minimum wage. A recent study by the Federal<br />
Reserve Bank of Chicago found that an increase in the minimum wage<br />
boosts consumer spending more than tax cuts, as families spend their<br />
paychecks at local businesses. The NELP article calls for an increase<br />
in the federal minimum wage, starting next year and phasing in over<br />
multiple years to make up lost ground.</li>
<li>Using federal contracts to create living-wage jobs. Every year, our<br />
government spends $400 billion on contracts with a wide range of<br />
companies for goods and services, financing more than 2 million jobs.<br />
But significant numbers of these jobs pay low wages and provide no<br />
benefits, in industries such as utilities and housekeeping, property<br />
maintenance and repair, clothing and apparel and food preparation. NELP<br />
says federal contracts should favor employers that pay living wages,<br />
provide health benefits, offer quality training and obey labor laws.</li>
<li>Enacting the <a href="http://www.aflcio.org/joinaunion/voiceatwork/efca" target="_blank">Employee Free Choice Act</a> to guarantee that workers can form unions and bargain free of<br />
intimidation and abuse. They say the unions transformed manufacturing<br />
into a middle-class industry after World War II; today, it is doing the<br />
same for low-wage workers such as janitors, child care workers, home<br />
care workers and hotel room cleaners. </p>
</li>
</ul>
<p>Owens and Bernhardt conclude that continuing on the path of rising<br />
inequality is not inevitable. Saying our country responded to the Great<br />
Depression by putting into place the policies that formed the basis for<br />
several decades of strong economic growth and shared prosperity, we can<br />
do the same today.</p>
<blockquote><p>We now face another deep economic crisis, and another<br />
opportunity to set the bar higher. Let’s not just stimulate the<br />
economy; let’s rebuild it with good jobs.</p>
<p>POST YOUR COMMENTS BELOW</p>
</blockquote>http://www.opposingviews.com/i/growing-income-gap-could-keep-economy-from-full-recovery#commentsmoneyrecessionthe recessionThe RecessionMon, 16 Mar 2009 21:26:50 +0000AFL-CIO1321 at http://www.opposingviews.comFed Chair Ben Bernanke Says Recession will Probably End in 2009http://www.opposingviews.com/i/fed-chair-ben-bernanke-says-recession-will-probably-end-in-2009
<p>Federal Reserve Chairman Ben Bernanke says America's recession<br />
"probably'' will end this year if the government succeeds in bolstering<br />
the banking system. Bernanke's comments came in an interview on CBS'<br />
"60 Minutes."</p>
<p>Bernanke's words have also made an impact on Wall Street, as stocks continued to climb on Monday for the fifth straight day. </p>
<p>The Associated Press reports: </p>
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<br /><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/fed-chair-ben-bernanke-says-recession-will-probably-end-in-2009#commentseconomyheadlinespoliticsrecessionthe recessionHeadlinesMon, 16 Mar 2009 19:18:50 +0000DeepDiveAdmin1313 at http://www.opposingviews.comStaying Put Until the Market Rebounds? Think Twicehttp://www.opposingviews.com/i/staying-put-until-the-market-rebounds-think-twice
<p><em>By Dr. Shelby Smith<br />
of The Retirement Pros</em></p>
<p>Confusion in the investment markets continues to decimate account values while shell-shocked investors look for answers. As mentioned in this <a href="http://www.opposingviews.com/topics/retirement">retirement</a> blog, you’ve experienced it everyday for the last year – growing losses, shrinking values and more bad news.??</p>
<p>Some losses have been so severe that again attaining the last high <a href="http://www.opposingviews.com/tags/water">water</a> market seems impossible. If you’ve lost 50%, or more, you now know your tolerance for loss is not as great as you thought, but still?many are holding onto the hope that staying put is the best strategy. That may not be the case. Let’s look at a real world situation.</p>
<p>While no investor has been immune to the downturn, many variable annuity owners are feeling better because of their investment’s “highest <a href="http://www.opposingviews.com/tags/anniversary">anniversary</a> value”, or ‘high watermark’, death benefit lock. This “high watermark” feature awards the greater of the actual account value or the highest anniversary value as the death benefit. ?If you have ridden your variable annuity from its peak value of late 2007 down to today’s paltry sum, the “locked in” death benefit exceeds by a wide margin the current account value. Only problem is: you’ve got to die to get the high watermark value. ?Ironically, it is this “death feature” that could be prompting you to keep the variable annuity. If so, read on because you have another option.</p>
<p>Mary Smith is a 72 year old retired school teacher in New Mexico. She put $100,000 into a non-qualified variable annuity in 2001.&nbsp;Her account value grew and peaked near $225,000 in late-2007 before plummeting back to $140,000 at the end of 2008 (parenthetically, had Mary hung onto her variable annuity the current value would approximate $105,000). Under her contract provisions, Mary’s beneficiary will receive the greater of (A) the account value or (B) the high watermark death value. Had Mary died at the end of 2008 her daughter would have received a $225,000 pre-tax benefit – $85,000 greater than the actual account value of $140,000</p>
<p><strong>$100,000 variable annuity cost basis<br />$140,000 account value<br />$225,000 variable annuity ‘highest account value’ death benefit</p>
<p></strong>Mary got professional help and learned about another alternative. She was torn because she needed to protect her account value from future market losses, but she also wanted to maintain the high watermark death benefit. The financial advisor who sold her the variable annuity in 2001 said “keep the account as it will surely grow back to $225,000 in her lifetime”, and this was Mary’s position until?she got better <a href="http://www.opposingviews.com/tags/advice">advice</a>.</p>
<p>Mary’s current advisor recommended a single premium life insurance contract that could provide a higher death benefit for her daughter, reduce her equity market exposure and reduce the <a href="http://www.opposingviews.com/tags/income">income</a> <a href="http://www.opposingviews.com/tags/taxes">taxes</a> paid on the annuity. Plus, he recommends a rider on the life policy that gives Mary access to the entire death benefit under certain <a href="http://www.opposingviews.com/topics/conditions">conditions</a> if she ever needs it. Here’s what it looked like</p>
<p><strong>$125,000 single premium life insurance <em>($140,000 minus $15,000 income tax)</em><br />$300,000 death benefit <em>(guaranteed to age 125)</em><br />$12,000 per month LTC benefit, if needed <em>(25 month benefit)</p>
<p></em></strong>By addressing Mary’s concerns with life insurance as a wealth transfer solution, the new advisor helped Mary increase the death benefit amount for her daughter by $75,000 and he created access to $300,000 should she ever need long term <a href="http://www.opposingviews.com/questions/should-the-us-adopt-a-single-payer-health-care-program">healthcare</a> – that’s nearly triple her variable annuity account value. Additionally, by withdrawing the $140,000 during her lifetime, Mary has reduced the income taxes due on her annuity gains by 50%.</p>
<p>The moral of the story: before you decide to stay put in the market when you’re sick over the risk of more losses or no recovery from the current market meltdown, get a second opinion. Of course, it helps to work with a financial advisor that thinks outside the traditional “<a href="http://www.opposingviews.com/tags/stock-market">stock market</a>” box. ?Financial planning is simply too complicated for the average investor; thus, don’t be shy about going with the pros when it comes to your <a href="http://www.opposingviews.com/questions/would-a-credit-card-bill-of-rights-ultimately-help-or-harm-consumers">money</a>.</p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/staying-put-until-the-market-rebounds-think-twice#commentsinvestingpersonal financerecessionretirementthe recessionThe RecessionSun, 15 Mar 2009 23:24:08 +0000Retirement Pros1308 at http://www.opposingviews.comBailouts for Liars, Illegal Aliens and Unjust Bonuseshttp://www.opposingviews.com/i/bailouts-for-liars-illegal-aliens-and-unjust-bonuses
<p>The inept managers of the insurance giant AIG, which is being bailed out by taxpayers at a cost of over $170 billion, are using taxpayer money for <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/03/14/AR2009031401394.html" modo="false">hundreds of millions of dollars in bonuses</a>!</p>
<p>The Senate <a href="http://michellemalkin.com/2009/03/09/stimulating-illegal-alien-jobs/">voted down</a> an amendment that would have kept federal bailout money from being used to hire illegal aliens, resulting in up to <a href="http://michellemalkin.com/2009/03/09/stimulating-illegal-alien-jobs/" modo="false">300,000</a> jobs being filled by illegal aliens that otherwise might have gone to citizens and legal immigrants.</p>
<p>In an unrecorded voice vote, the House of Representatives voted down a proposed amendment to keep people who lied on their loan applications from receiving federal bailout money. </p>
<p>The vote was unrecorded so that liberal lawmakers in conservative districts (who camouflage themselves as supposedly-conservative “Blue Dog” Democrats) could hide their vote from their constituents. The stimulus package <a href="http://www.openmarket.org/2009/03/08/8-trillion-in-bailouts-undeserving-rich-benefit/">funds</a> groups like <a href="http://www.dcexaminer.com/opinion/ACORN-SPECIAL-REPORTACORNs-sweet-billion-dollar-reward-39461537.html">ACORN</a>, which helped spawn the mortgage crisis by promoting “<a href="http://www.openmarket.org/2008/07/09/mortgage-bailout-bill-beneficiary-covered-up-embezzlement/">liar loans</a>,” and which has an extensive history of <a href="http://www.dcexaminer.com/opinion/ACORN-dissidents-sued-for-embezzlement-documents-39461837.html">financial fraud</a> and <a href="http://www.dcexaminer.com/opinion/ACORN-SPECIAL-REPORTACORNs-sweet-billion-dollar-reward-39461537.html">vote fraud</a>.</p>
<p>Federal spending commitments for bailouts now exceed <a href="http://www.openmarket.org/2009/03/08/8-trillion-in-bailouts-undeserving-rich-benefit/">$8 trillion</a>, including a “stimulus” package that the Congressional Budget Office admits will actually <a href="http://www.openmarket.org/2009/02/10/stimulus-package-shrinks-economy-expands-welfare-rolls/">shrink</a> the economy “<a href="http://ow.ly/Aca">in the long run</a>,” and that <a href="http://www.openmarket.org/2009/02/12/stimulus-guts-welfare-reform-is-deceptive/">guts</a> the 1996 welfare reform law (contradicting Obama’s claims in his 2008 campaign ads that he supported welfare reform — even though he had fought to undermine welfare reform while in the Illinois legislature).</p>
<p>Law professor Ronald Rotunda, co-author of a treatise on constitutional law, <a href="http://volokh.com/archives/archive_2009_03_15-2009_03_21.shtml#1237133250">doubts the constitutionality</a> of the stimulus package’s “bypass” provisions.</p>
<p>Meanwhile, healthy banks that sold shares to the federal government only under pressure from the Treasury Department (which argued that they should accept federal money so that unhealthy banks also taking federal money would not thereby be stigmatized as a result) are being <a href="http://overlawyered.com/2009/03/barney-frank-and-the-healthy-tarp-banks/">harassed by liberal lawmakers</a> like Barney Frank (D-Mass.) for spending much smaller sums than AIG on deserving managers and employees, and for failing to make risky mortgage loans to people with bad credit.</p>
<p>Money is pouring into the Washington, DC area, as up to <a href="http://www.openmarket.org/2009/03/03/your-loss-is-my-gain-sucker/">250,000 new bureaucrats</a> will be hired as a result of the explosion in federal spending (Obama has pushed through more spending in his first 60 days in office than Bush spent on the entire Iraq War, and federal deficits are at unprecedented levels, something that not even the proposed <a href="http://www.openmarket.org/2009/03/07/90-percent-tax-rate-proposed/">massive</a> tax increases will fix).</p>
<p>(By the way, Washington, D.C. now has the <a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/03/14/AR2009031402176.html">highest AIDS rate</a> in America — a rate of more than 3%, higher even than most of Africa, qualifying as a “generalized and severe epidemic.” Congress has plenary power over the District, but neglects its most basic oversight functions, resulting in a thoroughly incompetent D.C. city government).</p>
<p>Meanwhile, the economy faces a “litigation tax” from an <a href="http://www.openmarket.org/2009/03/13/an-explosion-of-litigation/">explosion in lawsuits</a>, as a result of recent changes in employment law, trial-lawyer earmarks in the stimulus package (such as HIPAA lawsuits), and a proliferation of products liability lawsuits resulting from anticipated anti-preemption bills in Congress, and the Supreme Court’s newfound reluctance (perhaps in response to liberal victories in the 2008 election) to limit runaway lawsuits in state courts.<br />&nbsp;<br /><strong>POST YOUR COMMENTS BELOW<br /></strong></p>http://www.opposingviews.com/i/bailouts-for-liars-illegal-aliens-and-unjust-bonuses#commentsmoneyobama presidencyrecessionthe recessionObama PresidencySun, 15 Mar 2009 21:21:09 +0000CEI1299 at http://www.opposingviews.comDon't Trust Newt Gingrich's Environmental Economicshttp://www.opposingviews.com/i/don-t-trust-newt-gingrich-s-environmental-economics
<p>Newt Gingrich's assertion that climate legislation will result in a $1,300 tax per household is voodoo economics--designed to scare us into believing climate protection is "just too expensive."</p>
<p>In Newt's nightmare tax math, the economic value of the carbon market just disappears! He assumes the money doesn't get returned to taxpayers; it doesn't get spent on any worthwhile investments in cleaner, smarter energy resources; it doesn't get invested in ways to reduce the energy we waste today, saving us money; it doesn't get used to help communities adapt to a changing climate; it doesn't get used to address regional differences in the cost of cutting global warming pollution. </p>
<p>No, in Newt's scary world, the money just vanishes, leaving us only with the bills. Fortunately, in the real world the dollars created by the carbon market will go to all of these purposes, providing us with a safer climate, reduced dependence on oil imports, and creating new jobs to build our economic recovery.</p>
<p>It's not that there isn't any cost to climate protection; it's that the cost is far smaller than the size of the carbon market, from which the $1,300 estimate is derived. The cost to physically achieve the emission reductions (i.e. the compliance costs), are roughly 10% of total carbon market value by one estimate (Dallas Burtraw, testimony before the Ways and Means Committee, March 12, 2009). The remaining 90% is just shifting money away from polluting activities toward cleaner goods and more secure sources of energy.</p>
<p>So, even if Newt were right that the total carbon market size worked out to $1300 per household, the actual cost of cutting that pollution would be more like $130 per household per year (minus any savings we earn from increased energy efficiency), or $2.50 a week .</p>
<p>And for that $2.50 (or less) per week we'd be getting a bargain that is hard to beat.</p>
<p><a href="http://www.nrdc.org/globalWarming/cost/contents.asp" title="The Costs of Inaction" target="_blank">Just four categories of climate damages alone</a> (hurricanes, higher energy bills, property lost to sea level rise, water supply impacts) are predicted to cost the average household $2,000 a year by 2025, $3,000 in 2050, rising rapidly to over $11,000 by the end of the century. And these estimates ignore (because they are too hard to count accurately), the added costs of droughts, floods, wildfires, agricultural damages, and the value of lost lives. We may not be able to eliminate all of these costs by acting now to cut pollution but we sure can help reduce them dramatically. </p>
<p>So think twice before you rely on Newt for financial advice.</p>http://www.opposingviews.com/i/don-t-trust-newt-gingrich-s-environmental-economics#commentsenergyenvironmentglobal warmingrecessionthe recessionThe RecessionSun, 15 Mar 2009 00:38:10 +0000NRDC1292 at http://www.opposingviews.comObama Expresses Confidence in the U.S. Economic Systemhttp://www.opposingviews.com/i/obama-expresses-confidence-in-the-u-s-economic-system
<p>President Barack Obama says investors should have 'absolute confidence' in the soundness of the United States. </p>
<p>Expressing optimism for both the economic and political systems of the U.S., Obama has reassured investors--specifically those in China--during a time when many are uncertain about the country's economic future. </p>
<p>The Associated Press reports: </p>
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<br /><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/obama-expresses-confidence-in-the-u-s-economic-system#commentsmoneyobama presidencyrecessionthe recessionObama PresidencySat, 14 Mar 2009 22:58:20 +0000DeepDiveAdmin1290 at http://www.opposingviews.comU.S. Ad Spending Fell 2.6% in 2008, Neilson Reportshttp://www.opposingviews.com/i/u-s-ad-spending-fell-2-6-in-2008-neilson-reports
<p><strong>NEW YORK --- </strong>The Nielsen Company<br />
reported today that U.S. advertising for the full year 2008 was down 2.6%<br />
compared to the full year 2007. According to preliminary figures from Nielsen,<br />
U.S. ad expenditures declined almost $3.7 billion to a total<br />
spend of $136.8 billion in 2008.</p>
<p>Hispanic Cable TV (+9.6%) and Cable TV (+7.8%) were the only two media to<br />
show ad growth in 2008. Cable was the highest revenue-generating medium with<br />
$26.6 billion in sales.</p>
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<p>"Given the state of the U.S. economy, a decline in ad spending was expected,<br />
but it's not as bad as it could have been," said<br />
Annie<br />
Touliatos, VP of Sales Development for Monitor-Plus, Nielsen's ad<br />
tracking service. "The campaign season and the Summer Olympics were two big<br />
events that had a tremendous impact on advertising, especially on TV buys."</p>
<p>Print media continued its anticipated decline in 2008. Local and National<br />
Newspaper ad spends declined 10.2% and 9.6%, respectively. National Magazines<br />
fell 7.6%, while Local Magazines dropped 3.7%.</p>
<p>New media was also hit by the tough economic climate. Internet ad spends<br />
dropped 6.4% and Network TV took a 3.5% hit. Nevertheless, television continued<br />
to be the dominant medium for advertisers, with 60% of all ad dollars spent on<br />
Network, Cable, Hispanic, or Spot TV.</p>
<p>Spanish Language TV (network and cable) advertising continued to grow at a<br />
clip of 0.8%, while African-American TV fell 3.4%.<strong></p>
<p>ADVERTISER SPENDING</strong></p>
<p>The top 10 advertisers spent a total of $15.5 billion in 2008<br />
- 15% less than the year before. Not a single one of the top 10 advertisers<br />
spent more in 2008 vs. 2007. Procter &amp; Gamble maintained its perch as the<br />
top advertiser this year, despite a 19% decline vs. 2007.</p>
<p>Detroit's Big Three automakers held on to spots in the top 10, despite<br />
double-digit percentage slashes in their ad budgets. Cerberus Capital Management<br />
(Chrysler) and Ford Motor Co. cut advertising 31% and 29%, respectively. General<br />
Motors trimmed its advertising 15%. Foreign automakers Toyota and Honda each<br />
made the top 10, but they, too, slashed their ad spend 7% and 3%,<br />
respectively.</p>
<p><strong>** Internet advertising expenditures account for CPM-based,<br />
image-based advertising. These reported estimated expenditures do not<br />
account for paid search advertising, text only, paid fee services,<br />
performance-based campaigns, sponsorships, barters, in-stream<br />
("pre-rolls") players, messenger applications, partnership advertising,<br />
promotions and email campaigns or house advertising activity. <br /></strong><br />POST YOUR COMMENTS BELOW<strong></p>
<p></strong>
</p>http://www.opposingviews.com/i/u-s-ad-spending-fell-2-6-in-2008-neilson-reports#commentsentertainmentmediarecessionsocietythe recessionEntertainmentFri, 13 Mar 2009 19:46:28 +0000DeepDiveAdmin1273 at http://www.opposingviews.comWant to Fix the Economy? Stop Worrying So Muchhttp://www.opposingviews.com/i/want-to-fix-the-economy-stop-worrying-so-much
<p>Lawrence Summers, President Barack Obama's top economic adviser,<br />
said Friday that the crisis in the financial sector has led to an<br />
'excess of fear' that must be broken to reverse the economic downturn.</p>
<p>The Associated Press reports: </p>
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<br /><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/want-to-fix-the-economy-stop-worrying-so-much#commentseconomymoneyobama presidencyrecessionthe recessionObama PresidencyFri, 13 Mar 2009 19:42:45 +0000DeepDiveAdmin1272 at http://www.opposingviews.comNAACP Sues Wells Fargo and HSBC for Racist Subprime Lendinghttp://www.opposingviews.com/i/naacp-sues-wells-fargo-and-hsbc-for-racist-subprime-lending
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<p>Today, the NAACP filed separate lawsuits in U.S. District Court in California against two of the country’s largest lenders, Wells Fargo, and HSBC. These lawsuits allege systematic, institutionalized racism in sub-prime home mortgage lending. The remedies being asked for in the lawsuit include measures for increased accountability and transparency.</p>
<p>According to the lawsuits, African American homeowners who received sub-prime mortgage loans from these lenders were more than 30 percent more likely to be issued a higher rate loan than Caucasian borrowers with the same qualifications.&nbsp; Other studies cited in the lawsuits demonstrate that disparities are pervasive. In fact, upper income African Americans are more than twice as likely to receive higher cost loans as their lower income white counterparts. The National Community Reinvestment Coalition’s most recent study finds that discrimination against minorities persists in mortgage lending. The Federal Reserve Board, U.S. Department of Housing and Urban Development and the FDIC have all made similar observations.&nbsp; </p>
<p>“It is time for these lenders to be held accountable,” said NAACP President Benjamin Todd Jealous,&nbsp;&nbsp; “We look forward to forcing real change and real relief through this lawsuit.” </p>
<p>“These banks are getting billions in bailout money yet think that they can get away with business as usual,” said Austin Tighe, co-lead counsel for the NAACP.&nbsp; “Predatory lending policies and practices are legally actionable, morally reprehensible, and fiscally irresponsible.”</p>
<p>These two new lawsuits raise the same claims as pending litigation by the NAACP against other mortgage industry leaders.&nbsp; Lenders named in this pending litigation include Accredited Home Lenders, Inc., Ameriquest Mortgage Co., Bear Sterns Residential Mortgage Corp. d/b/a Encore Credit, Chase Bank USA, Citimortgage, First Franklin Financial Corp., First Tennessee Bank d/b/a First Horizon National Corp., Fremont Investment &amp; Loan, GMAC Mortgage Group, LLC, GMAC ResCap, Long Beach Mortgage and SunTrust Mortgage.</p>
<p>“Lenders named in the suits, on average, made high cost sub-prime loans to higher qualified African Americans 54 percent of the time, compared to 23 percent of the time for Caucasians,” said NAACP Interim General Counsel Angela Ciccolo.&nbsp; “Our lawsuit aims to change the policies and practices which lead to those results.”</p>
<p>Earlier this year a federal court denied a joint motion filed by those defendants seeking to dismiss the lawsuit.&nbsp; The court denied that motion, finding that the NAACP had standing to bring the lawsuit, and that it had adequately stated its claims for the lawsuit to proceed.&nbsp; The lenders will now be required to turn over information and documents regarding their mortgage policies and practices.</p>
<p>One lender has already entered into a preliminary settlement agreement with the NAACP, and a number of other lenders are engaged in similar discussions.&nbsp; </p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/naacp-sues-wells-fargo-and-hsbc-for-racist-subprime-lending#commentsmoneyrecessionthe recessionThe RecessionFri, 13 Mar 2009 19:32:36 +0000NAACP1270 at http://www.opposingviews.comTime to Rethink the Gold Standard?http://www.opposingviews.com/i/time-to-rethink-the-gold-standard
<p>Back in 2007, presidential candidate Ron Paul generated a lot of talk, especially among libertarians, about monetary policy, the Federal Reserve, and the gold standard. As a longtime believer in sound money, I was surprised to discover how many smart young libertarians thought that talk of the gold standard was nutty. And perhaps more surprised to discover that they thought it was unnecessary now that the problem of central banking had been solved. As two of them wrote when I asked about their objections,</p>
<p><strong>“The gold standard is the solution to no actual problem that is of concern to anyone. I think it’s a mistake to take a relatively professional and independent central bank for granted, but we have one. Inflation is low and predictable. The monetary climate is stable and amenable to savings and investment, etc.”</p>
<p></strong><strong>“What’s the beef with the Fed?&nbsp; By my estimation, it’s been one of the most effective, restrained government agencies over the last twenty five years.&nbsp;They’ve dramatically reduced the volatility of the business cycle while achieving low, reasonably constant inflation.”</p>
<p></strong>Well. How’s that confidence in central banking looking now? I’m reminded of Murray Rothbard’s comment in 1975 about what the era of Vietnam, Watergate, and stagflation had done to trust in government:</p>
<p><strong>Twenty years ago, the historian Cecelia Kenyon, writing of the Anti-Federalist opponents of the adoption of the U.S. Constitution, chided them for being “men of little faith” – little faith, that is, in a strong central government. It is hard to think of anyone having such unexamined faith in government today.</p>
<p></strong>Partly in response to such criticisms of the gold standard, in February 2008 Cato published a paper by Professor Lawrence H. White, “<a href="http://www.cato.org/pub_display.php?pub_id=9181" target="_blank">Is the Gold Standard Still the Gold Standard among Monetary Systems?”</a>&nbsp;White argued:</p>
<p><strong>The gold standard is not a flawless monetary system. Neither is the fiat money alternative. In light of historical evidence about the comparative magnitude of these flaws, however, the gold standard is a policy option that deserves serious consideration.</p>
<p></strong><strong>In a study covering many decades in a large sample of countries, Federal Reserve Bank economists found that “money growth and inflation are higher” under fiat standards than under gold and silver standards.</p>
<p></strong><strong>A gold standard does not guarantee perfect steadiness in the growth of the money supply, but historical comparison shows that it has provided more moderate and steadier money growth in practice than the present-day alternative, politically empowering a central banking committee to determine growth in the stock of fiat money. From the perspective of limiting money growth appropriately, the gold standard is far from a crazy idea.</p>
<p></strong>And he quoted a devastating line from an <a href="http://books.google.com/books?id=VKfokklj3uQC&amp;pg=PA93&amp;lpg=PA93&amp;dq=Peter+Bernholz,+%E2%80%9CThe+Importance+of+Reorganizing+Money,+Credit,+and+Banking+When+Decentralizing+Economic+Decisionmaking,%E2%80%9D&amp;source=bl&amp;ots=ycXyeKg_Bt&amp;sig=5QH4xArVKOy6Q5MSMULbanGmT-8&amp;hl=en&amp;ei=_SK4Sbn2GI-Etgegw9yqCQ&amp;sa=X&amp;oi=book_result&amp;resnum=1&amp;ct=result#PPA104,M1" target="_blank">essay</a>&nbsp;(p. 104)&nbsp;by Peter Bernholz:</p>
<p><strong>A study of about 30 currencies shows that there has not been a single case of a currency freely manipulated by its government or central bank since 1700 which enjoyed price stability for at least 30 years running.</p>
<p></strong>In February 2008 White’s study didn’t get much attention. Most people still thought the Greenspan-Bernanke Fed was doing a great job, so why talk about <a href="http://www.cato.org/pubs/journal/cj9n2/cj9n2-1.pdf" target="_blank">alternatives to fiat money</a>? But now, after the crash of 2008 and the growing realization that Dow 14000 was the product of a cheap-money boom that led to the inevitable bust, maybe it’s time to think about the gold standard or other constraints on politicized money creation.</p>
<p>POST YOUR COMMENTS BELOW</p>http://www.opposingviews.com/i/time-to-rethink-the-gold-standard#commentsmoneyrecessionthe recessionThe RecessionFri, 13 Mar 2009 05:04:22 +0000Cato Institute1267 at http://www.opposingviews.comBernie Madoff Pleads Guilty, Could Face 150-Year Sentencehttp://www.opposingviews.com/i/bernie-madoff-pleads-guilty-could-face-150-year-sentence
<p>Former NASDAQ chairman and titanic swindler Bernard Madoff was convicted today of charges that range from securities fraud to money<br />
laundering to false filings with the<br />
SEC.</p>
<p>Over the past 25 years, Madoff used his investment firm, Bernard L. Madoff Investment Securities LLC, to cheat numerous clients -- some famous -- out of as much as $65 billion in what is being called the largest Ponzi scheme in history. He was ordered to jail immediately following his conviction, and he could face a maximum sentence of 150 years. Sentencing is scheduled for June 16. </p>
<p>“I never invested the funds in securities as promised,”<br />
Madoff told the judge in court today. He went on to say that he was “deeply<br />
sorry” and knew what he did was criminal. </p>
<p>Some of Madoff's victims speak out:</p>
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<br /><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/bernie-madoff-pleads-guilty-could-face-150-year-sentence#commentscrimeheadlinesmoneyrecessionthe recessionHeadlinesThu, 12 Mar 2009 19:34:22 +0000DeepDiveAdmin1250 at http://www.opposingviews.comThe Dangers of Investing in Chuck E. Cheesehttp://www.opposingviews.com/i/the-dangers-of-investing-in-chuck-e-cheese
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<p>Sometimes, government spending looks like a <em>great</em> idea. Take kids' paradise Chuck E. Cheese, for example. It's got heaps of games, great pizza and cheap beer on tap. Get a celebrity nicknamed <a href="http://en.wikipedia.org/wiki/Dan_Wilkinson" target="_blank">Big Daddy</a> to invest and it's a sure bet, right?</p>
<p>That's apparently what the Buckeye State <a href="http://www.limaohio.com/news/grant_24708___article.html/county_loan.html?orderby=TimeStampAscending&amp;oncommentsPage=1&amp;showRecommendedOnly=0" target="_blank">thought</a><br />
when it gave investor Allen County a $495,000 grant to set up a Chuck<br />
E. Cheese last year. Eager Lima, Ohio, children can expect the doors of<br />
the 12,000-square-foot party palace to open later this year.</p>
<p>As always, it was the meany, Big Kids who went and ruined everything. Watchdoggies of the <a href="http://www.cagw.org/" target="_blank">Citizens Against Government Waste</a> and the <a href="http://www.buckeyeinstitute.org/" target="_blank">Buckeye Institute</a> made a big <a href="http://www.whiotv.com/money/18908459/detail.html" target="_blank">stink</a> yesterday outside the Ohio statehouse in Columbus. They brought "a man dressed in a pink pig suit," to promote the <a href="http://www.buckeyeinstitute.org/docs/2009_Piglet.pdf" target="_blank">Ohio Piglet Book</a>, which suggests that now might not be the best time to spend government money on mouse pork.</p>
<p>The pig and his pals are probably upset because they never got invited to a Chuck E. Cheese <a href="http://www.youtube.com/watch?v=6YFiSRi3BZQ" target="_blank">party</a>.<br />
But they're partially right. Investing in Chuck E. Cheese is a bad<br />
idea. Forget corporate welfare: Do you know what goes on in those<br />
places? Chuck E. Cheese mixes the world's two main sources of trouble<br />
in one setting: booze and babies.</p>
<p>A cursory search of Chuck E. Cheese brings up one violent incident after another. A 2008 <a href="http://online.wsj.com/article/SB122878081364889613.html?mod=article-outset-box" target="_blank">article</a> about a Brookfield, Wisconsin, location describes the venue as the place where a kid can be a casualty:<br /><strong><br />Officers have been called to break up 12 fights, some of them physical, at the child-oriented pizza parlor since January 2007...</p>
<p>Law-enforcement<br />
officials say alcohol, loud noise, thick crowds and the high emotions<br />
of children's birthday parties make the restaurants more prone to<br />
disputes than other family entertainment venues.</strong>
<p>The<br />
environment brings out what security experts call the "mama-bear<br />
instinct." A Chuck E. Cheese can "take on some of the dynamics of the<br />
animal kingdom, where beasts rush to protect their young when they<br />
sense a threat." Apart from animal attacks, <a href="http://www.11alive.com/news/national/story.aspx?storyid=127336&amp;catid=166" target="_blank">mascots</a> are also a huge insurance risk, what with the regular <a href="http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20090303/NEWS/903030336" target="_blank">assaults</a> on poor Chucky.&nbsp; </p>
<p>So<br />
throwing money at Chuck E. Cheese might look like a great way to<br />
"invigorate" the economy, but it's clearly a bad idea. A better choice?<br />
Hobby Lobby. It's always quiet and the muzik's great. Plus, the<br />
investment could easily be called a <a href="http://hobbylobby.com/our_company/our_company.cfm?page=1" target="_blank">faith-based initiative</a>.</p>
<p>Another great idea is reading <em>Reason</em>'s coverage of <a href="http://www.reason.com/topics/topic/139" target="_blank">corporate welfare</a>. Associate Editor Katherine Mangu-Ward blogged about the gun and booze <a href="http://www.reason.com/blog/show/127857.html" target="_blank">policy</a> at a Georgia Chuck E. Cheese. </p>
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http://www.opposingviews.com/i/the-dangers-of-investing-in-chuck-e-cheese#commentsheadlinesparentingrecessionthe recessionHeadlinesThu, 12 Mar 2009 18:25:46 +0000Reason Foundation1249 at http://www.opposingviews.comAre You Working More Because of the Bad Economy?http://www.opposingviews.com/i/are-you-working-more-because-of-the-bad-economy
<p>I’ve been working for startups for the last two years and if you’ve<br />
ever worked for one, you know the work is endless. So I’m fairly used<br />
to working long hours. But a few friends who have what I call “normal<br />
jobs” recently mentioned to me that they are struggling with their<br />
work-life juggle because the work part has really kicked into high<br />
gear. </p>
<p>One works at a company where there has been two rounds of layoffs<br />
and she has taken on a lot more tasks that her laid off colleague used<br />
to handle. The other used to work four days a week and has decided to<br />
go back to a full five days a week schedule because she is afraid that<br />
she may be laid off if she doesn’t put in more face time.</p>
<p>Both of these friends told me that they feel lucky to still have<br />
their jobs (I think they were feeling bad doing a bit of complaining<br />
since my husband has been laid off for a bit and I am working at two<br />
under-funded startups and not exactly pulling in piles of cash.)
<p>But<br />
they are not the first to talk about working more or cutting back on<br />
flexible schedules in light of the horrific economic situation and<br />
rising unemployment. I tried to find some data that would support this<br />
— you know, the geek in me loves to find statistics that make me feel<br />
like what I am writing has some merit — but couldn’t. (If you know of<br />
some, please share in the comments.) </p>
<p>But my sense is that many<br />
employees who are lucky to have kept their jobs thus far are either<br />
working more because they have more to do or because they want to<br />
ensure that they are not targeted for the next round of layoffs.<br /><strong><br />POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/are-you-working-more-because-of-the-bad-economy#commentspersonal financerecessionthe recessionThe RecessionWed, 11 Mar 2009 21:02:15 +0000Nataly Kogan1237 at http://www.opposingviews.comSilicon Valley Would be Badly Hurt by Obama's Tax Policieshttp://www.opposingviews.com/i/silicon-valley-would-be-badly-hurt-by-obama-s-tax-policies
<p>Silicon Valley became famous as a great incubator of partnerships<br />
that helped develop companies like Apple, Cisco, eBay, Google, Intel<br />
and Sun Microsystems. But if President Barack Obama has his way,<br />
Silicon Valley will be hammered.</p>
<p>Obama outlined a budget that would more than double federal taxes on<br />
general partners — the entrepreneurs who incur the risk of assembling<br />
and managing partnerships for startups, distressed companies, real<br />
estate projects and other ventures.</p>
<p>A significant part of their<br />
compensation is what is termed "carried interest" — generally a 20<br />
percent share of what's left over after a portfolio company has been<br />
sold, after limited partners have been repaid their capital<br />
contributions with a preferred return, and after partnership expenses<br />
have been paid.</p>
<p>Currently carried interest is taxed at a 15 percent capital gain tax<br />
rate, but President Obama wants to tax it at a 39 percent ordinary<br />
income tax rate.</p>
<p>"States will undoubtedly follow the lead of the federal government<br />
and treat carried interest as ordinary income, too," says Jim Anderson<br />
of SVB Financial Group, San Francisco, which serves about 550 venture<br />
capital partnerships in the U.S., India, China, Israel and the U.K.<br />
With higher federal taxes plus state taxes, general partners would face<br />
a total hit around 50 percent. The tax hikes don't apply to limited<br />
partners who provide the money, but they're not the ones who decide<br />
whether a business venture is started or where it would operate.</p>
<p>An advantage of a partnership structure, which has been used for<br />
decades, is that it tightly aligns the interest of the general partner<br />
with the interest of the limited partners who provide almost all the<br />
capital. The only way a general partner can make money from the carried<br />
interest is to run the business so that limited partners make money.</p>
<p>In this respect, a partnership offers a compelling advantage over a<br />
corporate structure, quite apart from the lower costs of a partnership.<br />
In recent years, we have seen the interest of corporate executives at<br />
odds with those of shareholders, as these executives arranged "poison<br />
pills," "golden parachutes" and outrageous bonuses even when they ran<br />
their companies into the ground.</p>
<p>Startup companies do not have access to public stock markets, bond<br />
markets or commercial paper markets, and often they cannot get<br />
commercial bank loans. Expertise and financial support — over $10<br />
trillion — from venture capital firms as well as private equity firms<br />
is crucial. As University of Chicago economist Steven Kaplan put it:<br />
"Evidence for the positive productive effects of private equity is<br />
unequivocal."</p>
<p>SVB's Anderson believes that Obama's proposed tax hikes would be<br />
injurious for Silicon Valley, driving venture capital enterprise away<br />
to lower-tax jurisdictions and possibly out of the country. Big venture<br />
capital firms like Accel, Sequoia Capital and Summit Partners are<br />
exploring opportunities in Asia, China, Europe and the Mideast. Silicon<br />
Valley has depended on startups to maintain a fertile entrepreneurial<br />
environment as older companies lose their competitive edge.</p>
<p>Silicon Valley would be especially hard hit by Obama's soak-the-rich<br />
taxes. According to a recent survey, two Silicon Valley ZIP codes have<br />
the highest average gross incomes in the state. These people make the<br />
state's biggest mortgage payments, and Obama plans to squeeze them by<br />
reducing the deductibility of their mortgages. All this plus higher<br />
California taxes could spur an exodus that might eventually turn<br />
Silicon Valley into a ghost town.</p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/silicon-valley-would-be-badly-hurt-by-obama-s-tax-policies#commentsmoneyobama presidencyrecessionthe recessionObama PresidencyWed, 11 Mar 2009 20:56:55 +0000Cato Institute1235 at http://www.opposingviews.com$100 Million Available to Crime Victims Thanks to Recovery Acthttp://www.opposingviews.com/i/100-million-available-to-crime-victims-thanks-to-recovery-act
<p><strong>WASHINGTON ---</strong> The Department of Justice today announced that<br />
$100 million is available for crime victim programs as part of<br />
the American Recovery and Reinvestment Act of 2009. This funding will be<br />
administered by the department's Office of Justice Programs (OJP) through its<br />
Office for Victims of Crime (OVC), which oversees the Victims of Crime Act<br />
(VOCA) compensation and assistance formula and discretionary grant programs.</p>
<p>Of the $100 million, $47.5 million in formula<br />
funding will be directed to state agencies that administer VOCA-funded crime<br />
victim compensation programs and $47.5 million in formula funding<br />
will be directed to state agencies that administer VOCA-funded crime victim<br />
assistance programs. Five million dollars of the $100<br />
million will be directed to discretionary grant projects to be awarded<br />
under the currently open <a href="http://www.ojp.usdoj.gov/ovc/fund/dakit.htm" target="_new">National Field-Generated Training, Technical Assistance, and<br />
Demonstration Projects</a> (NFG) competitive grant solicitation.</p>
<p>A list of the allocations and an explanation of how the VOCA allocations were<br />
calculated is available at: <a href="http://www.ojp.usdoj.gov/ovc/fund/Recoveryformula.html" target="_new">www.ojp.usdoj.gov</a>. More<br />
information about the <a href="http://www.ojp.usdoj.gov/ovc/fund/dakit.htm" target="_new">National Field-Generated Training, Technical Assistance, and<br />
Demonstration Projects</a> (NFG) competitive grant solicitation is available:<br />
<a href="http://www.ojp.usdoj.gov/ovc/fund/dakit.htm" target="_new">here</a>.</p>
<p>The Recovery Act includes more than $4 billion to assist<br />
state, local, and tribal law enforcement and for other criminal justice<br />
activities that help to prevent crime and improve the criminal justice system in<br />
the United States. Overall, OJP will administer more than<br />
$2.7 billion in assistance for the criminal justice community,<br />
which will support the creation of jobs and much needed resources for states and<br />
local communities. Visit <a href="http://www.ojp.usdoj.gov/recovery" target="_new">here</a> for more information about<br />
these and the other OJP formula and competitive grants available through the<br />
Recovery Act.</p>
<p>The Office of Justice Programs, headed by Acting Assistant Attorney General </p>
Laurie O. Robinson, provides federal leadership in developing<br />
the nation's capacity to prevent and control crime, administer justice, and<br />
assist victims. OJP has five component bureaus: the Bureau of Justice<br />
Assistance, the Bureau of Justice Statistics, the National Institute of Justice,<br />
the Office of Juvenile Justice and Delinquency Prevention, and the Office for<br />
Victims of Crime. Additionally, OJP has two program offices: the Community<br />
Capacity Development Office, which incorporates the Weed and Seed strategy, and<br />
the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering,<br />
and Tracking (SMART). More information can be found <a href="http://www.ojp.gov/" target="_new">here</a>.</p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/100-million-available-to-crime-victims-thanks-to-recovery-act#commentscrimeobama presidencypoliticsrecessionthe recessionObama PresidencyTue, 10 Mar 2009 21:39:42 +0000DOJ1220 at http://www.opposingviews.comWhile Obama Leads, Limbaugh Republicans Just Say 'No'http://www.opposingviews.com/i/while-obama-leads-limbaugh-republicans-just-say-no
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<p><strong>WASHINGTON ---</strong> Today<br />
marks the 50th day of the Obama Presidency. In the last seven weeks, President<br />
Obama and the Democrats in Congress have provided health care to 11 million<br />
children by expanding SCHIP, promoted equality in the workplace by passing the<br />
Lily Ledbetter Fair Pay Act, lifted Bush-era restrictions on life-saving stem<br />
cell research, and passed an economic jobs and recovery plan that will save or<br />
create 3.5 million jobs while fixing our schools, putting America on the path to<br />
energy independence, and laying the foundation for long-term growth in the 21st<br />
Century.</p>
<p>Unfortunately, instead of joining the President in finding practical<br />
solutions to the challenges facing our country, Republicans in<br />
Washington have chosen to follow<br />
Rush<br />
Limbaugh's obstructionist politics every step of the way.</p>
<p>Almost every<br />
single Republican in Washington voted against the<br />
Presidents' jobs and economic recovery plan, and the Chairman of the Republican<br />
National Committee even suggested he would support primary opponents for the<br />
three Republicans who voted for it.</p>
<p>The bills to expand SCHIP and promote wage<br />
equality passed on largely party lines, and all Republican leaders in both<br />
chambers of Congress are resisting the President's stem cell plan. In fact, just<br />
yesterday one key House Republican admitted that his Party is more interested in<br />
bringing down Democrats' poll ratings than in passing real efforts to address<br />
the challenges facing our country.</p>
<p>And, during the debate over the President's<br />
jobs and economic recovery plan one House Republican Leader,<br />
Eric<br />
Cantor of Virginia, told the Washington Post the<br />
Republican approach to the Obama plan was "just saying no."</p>
<p>"While President Obama has spent his first 50 days in office working to<br />
address the challenges facing America's working families, Republicans are more<br />
interested in saying no and driving down poll numbers," said Democratic National<br />
Committee Communications Director<br />
Brad Woodhouse.</p>
<p>"Instead of<br />
joining Democrats in supporting the President's economic recovery plans,<br />
Republicans in Congress have chosen to follow<br />
Rush Limbaugh by<br />
becoming the party of no. Americans want leaders who will work together to<br />
confront the challenges we face. When Congress debates the President's budget,<br />
Republicans should stop following<br />
Rush Limbaugh and instead<br />
help the President create jobs, fix our schools, reform our health care system,<br />
make America energy independent, and lay the foundation for long-term growth in<br />
the 21st Century."<strong></p>
<p>POST YOUR COMMENTS BELOW</p>
<p></strong></p>http://www.opposingviews.com/i/while-obama-leads-limbaugh-republicans-just-say-no#commentsobama presidencypoliticsrecessionthe recessionObama PresidencyTue, 10 Mar 2009 21:23:41 +0000Democratic National Committee1218 at http://www.opposingviews.comWorld Economy Set to Shrink for 1st Time since 1940shttp://www.opposingviews.com/i/world-economy-set-to-shrink-for-1st-time-since-1940s
<p>In a bleaker assessment than those of most private<br />
forecasters, the World Bank predicted Sunday that the global economy<br />
would shrink in 2009 for the first time since World War&nbsp;II.</p>
<p>The<br />
bank did not provide a specific estimate, but bank officials said its<br />
economists would be publishing one in the next several&nbsp;weeks.</p>
<p>Until<br />
now, even extremely pessimistic forecasters have predicted that the<br />
global economy would eke out a tiny expansion but had warned that even<br />
a growth rate of 5 percent in China would be a disastrous slowdown,<br />
given the enormous pressure there to create jobs for the country's<br />
rural&nbsp;population.</p>
<p>The World Bank also warned that global trade<br />
would contract for the first time since 1982, and that the decline<br />
would be the biggest since the&nbsp;1930s.<a href="http://www.iht.com/articles/2009/03/08/business/econ.php" target="_blank"></p>
<p>Whole IHT story</a>.</p>
<p>And things ain't so rosy according to the International Monetary Fund, either. From a Wash Post story:<strong></p>
<p>Some<br />
fear that nations in Western Europe such as Austria, Ireland and<br />
Spain—believed to have graduated from IMF lifelines decades ago—may<br />
soon require bailouts, taking funds that would have been spent on<br />
poorer nations. It could also prove difficult to raise more money from<br />
hard-hit countries including the United States and Britain, where<br />
politicians and citizens may decide that charity begins at home.</strong><strong></p>
<p>"I'm<br />
worried about what happens when you see that a Greece or an Ireland<br />
that might need bailouts," said Simon Johnson, an MIT economics<br />
professor and former IMF chief economist. "Where is the money going to<br />
come from?"</p>
<p></strong>POST YOUR COMMENTS BELOW<strong></p>
<p></strong></p>http://www.opposingviews.com/i/world-economy-set-to-shrink-for-1st-time-since-1940s#commentsmoneyobama presidencyrecessionthe recessionObama PresidencyMon, 09 Mar 2009 20:47:21 +0000Reason Foundation1193 at http://www.opposingviews.comDemocrats Ram Through Change thanks to Crisis Atmospherehttp://www.opposingviews.com/i/democrats-ram-through-change-thanks-to-crisis-atmosphere
<p><a href="http://in.reuters.com/article/environmentNews/idINTRE5251VN20090306" target="_blank">Hillary Rodham Clinton</a>,<br />
the&nbsp;secretary of state who no doubt thinks of herself as “fourth in the<br />
line of succession,” tells a European audience how the Obama<br />
administration will pass an agenda that Americans have previously<br />
rejected: “Never waste a good crisis … Don’t waste it when it can have<br />
a very positive impact on climate change and energy security.”</p>
<p>As I’ve written several times, governments throughout the decades<br />
have taken advantage of wars and economic crises to expand their size,<br />
scope, and power. Bob Higgs wrote about “Crisis and Leviathan” long<br />
before Naomi Klein called it “The Shock Doctrine.”</p>
<p>But the striking thing about the Obama administration is that they<br />
openly acknowledge that’s what they’re doing — using a crisis to ram<br />
through their entire policy agenda while people are in a state of<br />
panic. Projects like national health insurance, raising the price of<br />
energy, and subsidizing more schooling — the three prongs of President<br />
Obama’s speech to Congress — have nothing to do with solving the<br />
current economic crisis. But&nbsp;the administration is trying to push them<br />
all through as “stimulus” measures. And they keep proclaiming their<br />
strategy.</p>
<p>First it was <a href="http://www.guardian.co.uk/commentisfree/cifamerica/2009/feb/10/obama-klein-shock-doctrine" target="_blank">Rahm Emanuel</a>:<br />
“You&nbsp;never want a&nbsp;serious crisis to go to waste. And this crisis<br />
provides the opportunity for us to do things that you could not do<br />
before.”&nbsp;Then <a href="http://www.cato-at-liberty.org/2009/02/26/bidens-shock-doctrine/" target="_blank">Joe Biden</a>: “Opportunity presents itself in the middle of a crisis.” <a href="http://www.guardian.co.uk/commentisfree/cifamerica/2009/feb/10/obama-klein-shock-doctrine" target="_blank">Not to mention</a> Paul Krugman and Arianna Huffington.&nbsp;And now Hillary.</p>
<p>Not since George Bush the elder told the media that his campaign<br />
theme was “Message: I care” has a president been so open about his<br />
political strategy. But these people are displaying a contempt for the<br />
voters. They’re telling us that we’re so dumb, we’ll go along with a<br />
sweeping agenda of economic and social change because we’re in a state<br />
of shock. They may be right.</p>
<p>But voters and members of Congress should remember Bill Niskanen’s <a href="http://www.cato.org/pub_display.php?pub_id=9951" target="_blank">sobering analysis</a>&nbsp;of previous laws passed in a panic.<br /><strong><br />POST COMMENTS BELOW<br /></strong></p>http://www.opposingviews.com/i/democrats-ram-through-change-thanks-to-crisis-atmosphere#commentsforeign policyobama presidencyrecessionthe recessionObama PresidencyMon, 09 Mar 2009 20:25:30 +0000Cato Institute1189 at http://www.opposingviews.comKarl Rove Responds to Barack Obama's First 50 Days in Officehttp://www.opposingviews.com/i/karl-rove-responds-to-barack-obama-s-first-50-days-in-office
<p>As Americans continue to grow frustrated with the state of the economy, some are asking whether President Barack Obama is taking the right steps to move us forward. </p>
<p>Is the new president working swiftly enough and making the right decisions during this difficult time in America's history? Former Bush adviser Karl Rove weighs in with his perspectives on Obama's first 50 days in office.</p>
<p><embed salign="LT" name="undefined" bgcolor="#000000" play="false" scale="noscale" scriptaccess="always" allowfullscreen="true" pluginspage="http://www.macromedia.com/go/getflashplayer" src="http://foxnews1.a.mms.mavenapps.net/mms/rt/1/site/foxnews1-foxnews-pub01-live/current/videolandingpage/fncLargePlayer/client/embedded/embedded.swf" type="application/x-shockwave-flash" id="mediumFlashEmbedded" flashvars="playerId=videolandingpage&amp;playerTemplateId=fncLargePlayer&amp;categoryTitle=Latest Video&amp;referralObject=3785925&amp;referralPlaylistId=949437d0db05ed5f5b9954dc049d70b0c12f2749" allowscriptaccess="always" height="275" wmode="false" menu="false" quality="high" width="305"></p>
<p><strong>POST YOUR COMMENTS BELOW</strong></embed></p>http://www.opposingviews.com/i/karl-rove-responds-to-barack-obama-s-first-50-days-in-office#commentsobama presidencypoliticsrecessionthe recessionObama PresidencyMon, 09 Mar 2009 00:07:13 +0000DeepDiveAdmin1184 at http://www.opposingviews.comDo Democrats Really Want to Help the Economy?http://www.opposingviews.com/i/do-democrats-really-want-to-help-the-economy
<p><strong>Donna Rook, a supporter of The Heartland Institute, wonders why the Democrats are blaming George Bush for the financial problems facing us all.</strong><br /><strong><br />By Donna Rook</strong></p>
<p>Civics 101: Congress passes laws on taxing, spending and regulation. We have had a Democratic Congress since 2006. Democrats refused to rein in (regulate) Fannie Mae and Freddie Mac in 2003 when President Bush and Senator McCain raised the issue.</p>
<p>The Community Reinvestment Act, passed during Jimmy Carter’s presidency and strengthened by President Clinton, forced banks to make loans to subprime borrowers.</p>
<p>The Federal Reserve flooded the economy with money, encouraging speculation by both lenders and borrowers.</p>
<p>The stock market reflects investors’ view of future economic health, or lack of it. Today’s market is rejecting Democratic moves toward a socialized economy.</p>
<p>The theory of government spending to revive the economy has been discredited by Roosevelt’s New Deal, Carter’s stagflation and Japan’s zombie economy of the 1990’s. Europe, where socialization has been tried for decades, has an unemployment rate in the teens, while the US is still under 10 percent.</p>
<p>Tax cuts, as shown by Presidents Kennedy and Reagan, are the proven cure for an ailing economy.</p>
<p>Do Democrats want to help the economy, or are they conducting a War on Prosperity to provide an excuse to increase government control in the name of “helping?”</p>
<p><strong>POST YOUR COMMENTS BELOW</strong></p>http://www.opposingviews.com/i/do-democrats-really-want-to-help-the-economy#commentsmoneyobama presidencyrecessionthe recessionObama PresidencySun, 08 Mar 2009 23:49:22 +0000The Heartland Institute1182 at http://www.opposingviews.comJim Cramer Says He'll Fight Obama's Economic Agendahttp://www.opposingviews.com/i/jim-cramer-says-he-ll-fight-obama-s-economic-agenda
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<p><strong>WASHINGTON ---</strong> The Republican National Committee issued this op-ed by Jim Cramer:</p>
<p>I am a fight-not-flight guy, so I was on my hackles when I heard White House Press Secretary<br />
Robert Gibbs' answer to a question about my pointed criticism of the president on multiple venues, including the "Today Show."</p>
<p>"I'm not entirely sure what he's pointing to make some of the<br />
statements," Gibbs said about my point that President Obama's budget<br />
may be one of the great wealth destroyers of all time. "And you can go<br />
back and look at any number of statements he's made in the past about<br />
the economy and wonder where some of the backup for those are, too."</p>
<p>Huh? Backup? Look at the incredible decline in the stock market, in<br />
all indices, since the inauguration of the president, with the drop<br />
accelerating when the budget plan came to light because of the massive<br />
fear and indecision the document sowed: Raising taxes on the eve of<br />
what could be a second Great Depression, destroying the profits in<br />
healthcare companies (one of the few areas still robust in the<br />
economy), tinkering with the mortgage deduction at a time when U.S.<br />
house price depreciation is behind much of the world's morass and<br />
certainly the devastation affecting our banks, and pushing an<br />
aggressive cap and trade program that could raise the price of energy<br />
for millions of people.</p>
<p>The market's the effect; much of what the president is fighting for<br />
is the cause. The market's signal can't be ignored. It's too palpable,<br />
too predictive to be ignored, despite the prattle that the market's<br />
predicted far more recessions than we have...</p>
<p>How much I wish it were true right now that stocks played less of a<br />
role in peoples' lives. But stocks, along with housing, are our<br />
principal forms of wealth in this country. Only the people who have<br />
lifetime tenure, insured solid pensions and rent homes but own no<br />
stocks personally are unaffected. Sure that's a lot of people, but<br />
believe me, they aspire to have homes and portfolios. If we only want<br />
to help those who have no wealth to destroy, we are not helping the<br />
majority of Americans; we are not helping the broader population.</p>
<p>But Obama has undeniably made things worse by creating an atmosphere<br />
of fear and panic rather than an atmosphere of calm and hope. He's done<br />
it by pushing a huge amount of change at a very perilous moment, by<br />
seeking to demonize the entire banking system and by raising taxes for<br />
those making more than $250,000 at the exact time when<br />
we need them to spend and build new businesses, and by revoking<br />
deductions for funds to charity that help eliminate the excess supply<br />
of homes.</p>
<p>We had a banking crisis coming into this regime, but now every area<br />
is in crisis. Each day is worse than the previous one for this<br />
miserable economy and while Obama's champions cite the stimulus plan,<br />
it's really just a hodgepodge of old Democratic pork and will not<br />
create nearly as many manufacturing or service jobs as we hoped. China's stimulus plan is the model; ours is the parody.</p>
<p>Sure there's going to be some mortgage relief, but the way to approach that problem is to eliminate the overhang, which a $15,000<br />
tax credit for existing home sales could have dented if not consumed. I<br />
have offered a comprehensive plan of 4% refinanced mortgages for all by<br />
the government, not just those many considered deadbeats, to eliminate<br />
moral hazard. I have come up with a novel plan to cut the principal and<br />
spare the banks regulatory problems by offering them a certificate of<br />
equity, making them whole over time when the house appreciates in<br />
value, which will happen if demand is stoked and supply is shrunk. </p>
<p>Which leads me to the true irony of not being political: I don't<br />
like talking politics. It is personal, but some things are a matter of<br />
public record, including my substantial six figure donations to the<br />
Democratic Party before I was no longer allowed to contribute by<br />
contractual agreement. I regard two Democratic governors as my friends,<br />
and helped back one of them in a major financial way and spoke and<br />
campaigned directly for the other.</p>
<p>Most important, I believe his agenda is crushing nest eggs around<br />
the nation in loud ways, like the decline in the averages, and in soft<br />
but dangerous ways, like in the annuities that can't be paid and the<br />
insurance benefits that will be challenging to deliver on.</p>
<p>So I will fight the fight against that agenda.</p>
<p>If that makes me an enemy of the White House, then call me a general<br />
of an army that Obama may not even know exists -- tens of millions of<br />
people who live in fear of having no money saved when they need it and<br />
who get poorer by the day. -- (photo: courtesy of <a href="http://www.cnbc.com" title="www.cnbc.com">www.cnbc.com</a> )<strong></p>
<p>POST YOUR COMMENTS BELOW<br /></strong></p>
<p>Jim Cramer is host of CNBC's "Mad Money" and markets commentator<br />
for TheStreet.com. He graduated from Harvard<br />
where he was President and Editor-in-Chief of the prestigious daily The<br />
Harvard Crimson. After graduation he became a reporter for the Tallahassee<br />
Democrat and later for the Los Angeles Herald Examiner where he covered stories<br />
ranging from homicides to sporting events. Cramer is a former hedge fund<br />
manager and founder/owner and Senior Partner of Cramer Berkowitz.</p>http://www.opposingviews.com/i/jim-cramer-says-he-ll-fight-obama-s-economic-agenda#commentsobama presidencypoliticsrecessionthe recessionObama PresidencyFri, 06 Mar 2009 21:29:06 +0000Republican National Committee1167 at http://www.opposingviews.comTurns Out Women Earn Even Less than We Thoughthttp://www.opposingviews.com/i/turns-out-women-earn-even-less-than-we-thought
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<p>In the current global economic crisis when jobs and living standards<br />
for millions of workers are threatened, a new report reveals the pay<br />
gap between men and women worldwide may be much higher than previously<br />
believed. The report, <a href="http://www.ituc-csi.org/IMG/pdf/GAP-09_EN.pdf" target="_blank"><em>Gender (in)Equality in the Labor Market</em></a>, puts the global pay gap at up to 22 percent, rather than the official government figure of 16.5 percent&nbsp;reported last year.</p>
<p>The report, released today by the International Trade Union Confederation&nbsp;(<a href="http://www.ituc-csi.org/" target="_blank">ITUC</a>), in advance of International Women’s Day, March 8, reaffirms what union members already know: Women who belong to unions <a href="http://www.aflcio.org/joinaunion/why/uniondifference/index.cfm" target="_blank">earn more than nonunion women</a> and receive better pay relative to their male co-workers. Click <a href="http://www.ituc-csi.org/IMG/pdf/GAP-09_EN.pdf" target="_blank">here</a> to read the entire report.</p>
<p>Says ITUC General Secretary Guy Ryder:</p>
<p><strong>This report clearly confirms the advantage which men and<br />
women workers gain from union membership, which is all the more<br />
important in the current global economic crisis when jobs and living<br />
standards for millions of workers are under severe threat.</strong></p>
<p>The report also confirms that women workers who have higher<br />
education still receive less pay in nearly every profession than their<br />
male counterparts. In the United States, the AFL-CIO <a href="http://www.dpeaflcio.org/" target="_blank"><strong>Department for Professional Employees</strong></a>&nbsp;(DPE) found recently that even though women workers are <a href="http://blog.aflcio.org/2008/07/13/women-better-educated-than-men-still-paid-less" target="_blank">better educated than men</a>,<br />
they earn less. In 2005, full-time women workers in the United States<br />
who graduated from high school earned 34 percent less than men with<br />
similar degrees. Women with bachelor’s degrees earned 31 percent less.<br />
Those with&nbsp;master’s degrees were paid 32 percent less and those with<br />
doctorates received about 30 percent less. Click <a href="http://www.dpeaflcio.org/programs/factsheets/fs_2008_Professional_Women.htm" target="_blank"><strong>here</strong></a> to read the entire fact sheet, “<a href="http://www.dpeaflcio.org/programs/factsheets/fs_2008_Professional_Women.htm" target="_blank"><strong>Salaried and Professional Women: Relevant Statistics</strong></a>.”</p>
<p>U.S. working women took a big step toward pay equity in January when President Obama <a href="http://blog.aflcio.org/2009/01/29/lilly-ledbetter-watches-as-obama-signs-fair-pay-act" target="_blank">signed the Lilly Ledbetter Fair Pay Act</a> that strengthens womens’ right to gain equal pay for equal work.</p>
<p>Says ITUC President Sharan Burrow:</p>
<p><strong>There are a number of reasons why women still earn so<br />
much less than men, including overt as well as subtle discrimination<br />
against women in the labor market and in the workplace, the way that<br />
employers, especially in the private sector, handle promotions to<br />
better-paid jobs, and lack of maternity protection for women and<br />
parenting leave that both men and women can access.</strong></p>
<p>One way women are discriminated against is by the refusal of many employers to provide paid maternity leave (<a href="http://www.youtube.com/ITUCCSI" target="_blank">see video</a>). In a study of 19 countries with comparable per capita income, the <a href="http://www.epi.org/" target="_blank"><strong>Economic Policy Institute</strong></a><br />
found the United States provides the fewest maternity leave benefits in<br />
both length of leave and paid time off. That doesn’t include any<br />
disability insurance for which mom may qualify.</p>
<p>The U.S. federal <a href="http://blog.aflcio.org/2008/04/10/family-medical-leave-turns-15-under-attack-by-bush-labor-department" target="_blank"><strong>Family and Medical Leave Act</strong></a><br />
(FMLA), which has been the law for 15 years, gives eligible parents 12<br />
weeks unpaid leave to care for a new child. Aside from being unpaid,<br />
the leave is limited to workplaces of more than 50 employees, which<br />
excludes about 48 million workers.</p>
<p>The ITUC report also points out the appalling human and economic<br />
cost of violence against women, taking a close look at the impact of<br />
violence against women at home, in society and at work. The report<br />
cites Worlds Health Organization figures, which show that in some<br />
countries, a majority of women experience physical assault and<br />
psychological intimidation. Globally, an average of some one-third of<br />
women suffer from violence at some stage in their lives.</p>
<p>Along with the lasting physical and mental damage caused by violence<br />
against women, the report clearly demonstrates how it affects on<br />
women’s employment and economic situation. The report gives examples of<br />
the total economic cost of violence against women in several countries<br />
indicating that the total global cost is likely to be in the tens or<br />
even hundreds of billions of dollars.</p>
<p>Adds Burrow:</p>
<p><strong>Unions around the world are working to stop violence<br />
against women, through government action, raising awareness and also<br />
action in workplaces. We are calling on governments to work together to<br />
build a complete picture of the causes and effects, including analysis<br />
of the huge economic costs which add to the impacts on women themselves<br />
and on society.</strong></p>
<p>POST YOUR COMMENTS BELOW</p>http://www.opposingviews.com/i/turns-out-women-earn-even-less-than-we-thought#commentspersonal financerecessionthe recessionwomen's rightsThe RecessionThu, 05 Mar 2009 21:42:30 +0000AFL-CIO1142 at http://www.opposingviews.com